BASF posted Asia Pacific sales of EUR8.7 billion (US$11.8 billion) in 2009, but was down from sales of EUR9.3 billion (US$12.6 billion) in 2008.

 

Income from operations (EBIT) was almost doubled to EUR503 million (US$683 million) from the previous year thanks to an improvement of the business environment, a "value before volume" approach and successful cost reduction measures. With these results, BASF has taken important steps towards weathering the economic crisis in the region.

 

Despite the adverse business environment, the integration of Ciba also proceeded rapidly in Asia Pacific and strengthened the specialty chemicals business.

 

Under its Asia Pacific Strategy 2020, announced last year, BASF intends to grow above market and thus double sales in the region by the year 2020 while earning a premium on cost of capital. Under this strategy, BASF aims to become a preferred supplier to key growth industries including automotive, construction, packaging, paint and coatings, and pharmaceuticals. The company has set up industry target groups for each of these sectors to enhance its understanding of customers' needs and be better positioned to provide products and solutions based on BASF's global knowledge and resources.

 

With a goal to double its employees in research and development and increase its overall headcount by 5,000 during the next 10 years, in 2009 BASF set up dedicated recruitment centres in India and China to manage the increase in hiring.  As of the end of 2009, there were approximately 400 employees working in 12 research and development centres over Asia.

 

Local innovations and solutions came from all around the Asia Pacific region in 2009. A tangible pilot project to promote the use of biodegradable bags was launched in Thailand; an international agreement to explore plant biotechnology in Malaysia; new form of lightweight concrete in India; a new way to reduce noise on the subway in South Korea, and groundbreaking refrigeration technology in Taiwan.

 

Globally, BASF again intends to maintain its research budget at the previous years' high level, with an overall target of EUR1.38 billion (US$1.87 billion) in 2010.

 

In 2009 BASF achieved the first phase of its site optimisation project, which aims to increase capacity through debottlenecking production and by exploiting technical synergies. First implemented at the company's integrated production sites, the process is ongoing at BASF sites around the region including those in China, South Korea, and Japan. BASF aims to reduce costs in Asia Pacific by at least EUR100 million (US$135.8 million) annually by 2012.

 

BASF is the world's leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics and performance products to agricultural products, fine chemicals and oil and gas.